https://slate.com/business/2017/11/republicans-are-about-to-repeat-kansas-tax-cut-disaster.html
Suffice to say, cutting taxes on these businesses didn’t do Kansas’ economy much good. Instead a jobs boom, the state found itself slogging through years of unimpressive growth and massive budget deficits as its tax base disappeared, forcing lawmakers to cut spending on [URL='http://www.kansascity.com/news/politics-government/article9376751.html']public schools, colleges, Medicaid, and more. The state’s credit rating was humiliatingly downgraded. Eventually, legislators got fed up with the pain, and this year they finally voted to reverse the cuts, with Republicans joining Democrats to override Brownback’s veto.[/URL]
In April, a group of economists took stock of the Kansas misadventure, using administrative tax data to figure out whether the cuts had done any good at all. In short, the researchers concluded, they had not. The main effect, it seemed, was that business owners relabeled some of their income as “profits” rather than wages in order to cut their tax bills. Business investment by passthroughs actually seemed to decline slightly.
Suffice to say, cutting taxes on these businesses didn’t do Kansas’ economy much good. Instead a jobs boom, the state found itself slogging through years of unimpressive growth and massive budget deficits as its tax base disappeared, forcing lawmakers to cut spending on [URL='http://www.kansascity.com/news/politics-government/article9376751.html']public schools, colleges, Medicaid, and more. The state’s credit rating was humiliatingly downgraded. Eventually, legislators got fed up with the pain, and this year they finally voted to reverse the cuts, with Republicans joining Democrats to override Brownback’s veto.[/URL]
In April, a group of economists took stock of the Kansas misadventure, using administrative tax data to figure out whether the cuts had done any good at all. In short, the researchers concluded, they had not. The main effect, it seemed, was that business owners relabeled some of their income as “profits” rather than wages in order to cut their tax bills. Business investment by passthroughs actually seemed to decline slightly.